‘Supply chains could be disrupted'

The Star

26-05-2025

FMM cites knock-on effect from extended migrant repatriation programme
PETALING JAYA: The extended Migrant Repatriation Programme 2.0 may have a knock-on effect on the nation's manufacturing sector due to disruptions in the supply chain, says the Federation of Malaysian Manufacturers.
Its president Tan Sri Soh Thian Lai said while the programme would have little impact on the manufacturing industry as a whole, the sudden exit of foreign workers could disrupt supply chains.
'Our members mostly do not employ undocumented workers due to stringent audit requirements and high compliance expec­tations from both regulators and international clients.
'But the sudden departure of undocumented workers from other sectors, coupled with the current freeze on foreign worker recruitment, could result in a disruption to our supply chains and have a knock-on effect in various sectors, including manufacturing.
'The government must ensure a continuous and legally compliant supply of foreign workers to meet the needs of businesses and maintain industrial sustainability,' he said when contacted.
For the programme to achieve success, Soh emphasised the necessity of implementing it alongside coordinated enforcement, public education and structural reforms aimed at addressing the underlying causes of undocumented employment.
'The misuse of business licen­ces by locals, which enables undocumented workers to operate outside the legal employment system, is also a systemic issue that is unresolved,' he said.
Soh suggested the government fast track the anti-Ali Baba law to prevent foreign workers from illegally operating businesses.
'We have consistently highlighted that this law is critical to tackling the root causes of undocumented employment and illegal business operations,' he added.
Soh also said that more clarification is needed with regard to plans to allow foreign workers to transfer between employers across sectors.
He said the proposal was merely communicated through an internal circular by the Immi­gration Department and lacked subsequent public clarity and implementation details.
'This has created uncertainty among employers and must be addressed promptly if the government intends for this mechanism to work in tandem with the repatriation programme,' he said.
The government initially implemented the programme from March 1 to Dec 31 last year.
It allowed undocumented migrants to return to their home countries without facing prosecution by paying a compound fine of between RM300 and RM500.
On Friday, Home Minister Datuk Seri Saifuddin Nasution Ismail said the programme would be extended until April 30 next year.
Small and Medium Enterprises Association Malaysia president Datuk William Ng said the government should consider legalising undocumented migrant workers if they were already gainfully employed.
'If they entered Malaysia illegally, knowing full well they were going to be working without documentation, why would they surrender themselves?' he said when contacted.
Unlike Singapore, Ng said Malaysia doid not have problems with regard to the availability of land for workers' housing.
'It makes little sense to approach the issue of migrant workers as though they are depriving local individuals of employment opportunities.
'They are not, and this is star­ving our industry of growth,' he said.
Kuala Lumpur and Selangor Indian Chambers of Commerce and Industry president Nivas Ragavan said the extension was a welcome move but needed better coordination.
'While digitalisation has helped the process, inconsistent enforcement and sudden changes in requirements often cause delays.
'More coordination between agencies would help,' he said.
He also mentioned that there continued to be a shortage, particularly in the semi-skilled and low-skilled sectors.
'The repatriation programme may worsen this in the short term unless it is balanced with streamlined legal recruitment channels.'